Average property prices in prime central London (PCL) fell 0.3% in October, the latest data from Knight Frank reveals. 

The data found that the fall was the biggest monthly decline since the onset of the pandemic in May 2020. 

Meanwhile, there was a decline of 0.1% in prime outer London (POL) in October, which was the first decline in 30 months.

Knight Frank says the latest data “points to a robust market in prime London despite the fact buyers, sellers and anyone re-mortgaging took a sharp intake of breath in October”.

The number of offers made in London was down by just over a fifth versus the five-year average (excluding 2020) in October while viewings were down by 12%.

However, the number of new buyers registering was up by 26% and the number of instructions to sell was 28% higher, which Knight Frank suggests transactions will remain healthy for now.

Average prices in PCL rose 2% in the year to October, while the increase was 4.8% in POL.

Knight Frank head of UK residential research Tom Bill says: “October was not a positive month for the UK property market and prime London postcodes were not immune from the uncertainty that followed the mini-Budget.”

Meanwhile, Knight Frank head of London sales Rory Penn adds: “Sentiment became more negative in October, but Rishi Sunak has calmed things down.”

“Buyers are getting used to the new normal for rates but there is a strong pipeline of activity and on a global stage London’s appeal is undiminished. We, therefore, do not expect the sort of price declines we saw during the global financial crisis.”